US-Iran Deal Boosts Oil Prices Lower, Japan and South Korea Stocks Hit New Highs

(CNA Hong Kong, June 18, Comprehensive Foreign News) U.S. President Trump and Iranian President signed an agreement to end the war and reopen the Strait of Hormuz, leading to a continued decline in oil prices. Major Asian stock market indices closed mixed today, with the Nikkei index and the South Korean Kospi both reaching new highs.

According to AFP, Pakistani Prime Minister Shehbaz Sharif, who mediated the agreement, stated on social platform X: "As a first step, Iran will immediately reopen the Strait of Hormuz, and the United States will immediately lift the maritime blockade."

Under the agreement, the U.S. will immediately grant waivers on oil sanctions and assist in establishing a $300 billion reconstruction fund; Iran, in turn, agrees to dilute enriched uranium during negotiations for a long-term agreement.

Crude oil prices fell by more than 3% today, extending the decline since related news broke over the weekend. Since the market began to buzz with rumors of a U.S.-Iran agreement last week, prices for the world's two major crude oil futures contracts, West Texas Intermediate (WTI) and Brent crude, have fallen by more than 15% cumulatively.

Stephen Innes, a strategist at SPI Asset Management, noted: "The signing of the Memorandum of Understanding (MOU) and the faster restart of the Strait of Hormuz will help remove some of the fear premium from the crude oil market."

Driven by the artificial intelligence (AI) boom, Samsung Electronics and SK Hynix continued their strong performance. The South Korean Composite Stock Price Index (Kospi) closed up by more than 2%, breaking the 9000-point mark for the first time in history. The Nikkei, Japan's benchmark stock index, closed up 1.65%, surpassing 71000 points for the first time.

As for other Asian markets, Singapore, Taipei, Mumbai, and Manila stocks rose in tandem; Hong Kong, Shanghai, Sydney, Wellington, Bangkok, and Jakarta stocks closed lower. (Compiled by Liu Wen-yu) 1150618

Choose to stand with the facts. Your every contribution is a force to protect press freedom.

Download the CNA "One-Stop News" APP for real-time updates.

This website's text, images, and videos may not be reproduced, publicly broadcast, publicly transmitted, or used without authorization.